China warns over UK nuclear project

Tuesday, August 09, 2016 - 01:40

Failing to go ahead with the Hinkley Point nuclear project could threaten China's relationship with Britain, its ambassador to the UK has warned in the Financial Times. As Joanna Webster reports, Liu Xiaoming said the delay had brought the two countries to a ''crucial historical juncture''.

▲ Hide Transcript

▶ View Transcript

Britain's relationship with China could be under threat if it fails to approve the Hinkley Point nuclear project.
China's ambassador to the UK warning the two countries are at a "crucial historical juncture".
Writing in the FT, he hints that "mutual trust" could be in jeopardy if Theresa May blocks the deal.
(SOUNDBITE) (English) MARKET STRATEGIST, BGC PARTNERS, MIKE INGRAM, SAYING:
"I can't remember the last time that a senior Chinese politician actually made comments of this nature so clearly the Chinese leadership is very unhappy with the way things seems to be proceeding so there's a lot of pressure on the Business and Energy minister to actually complete his review of Hinkley Point swiftly."
France's EDF set to build two reactors in the UK, with financial backing from China.
The plan was championed by May's predecessor David Cameron.
But just hours after the board of EDF gave the green light in early August ...
May's new government slammed on the brakes.
Instead of rubber stamping the agreement, it launched a review of the 18 billion pound deal.
(SOUNDBITE) (English) MARKET STRATEGIST, BGC PARTNERS, MIKE INGRAM, SAYING:
"Theresa May has to tread a very very careful path in its relations with Chain, particularly in a post-Brexit environment. of course, signing trade deals and encouraging investment is absolutely key to the post-Brexit strategy."
The UK government is playing down suggestions of a u-turn.
Instead saying the new PM just needs more time.
A decision now slated for September.